Category: 4. Fundamental Analysis

There’s no one “All in” or “Bet the Farm” formula for success when it comes to predicting how the market will react to data reports or market events or even why it reacts the way it does. You can draw on the fact that there’s usually an initial response, which is usually short-lived, but full of…

A quick Yahoogleing (that’s Yahoo, Google, plus Bing) search of “forex + news” or “forex + data” returns a measly 30 million results combined. 30 MILLION! That’s right! No wonder you’re here to get some education! There’s just way too much information to try to process and way too many things to confuse any newbie forex trader.…

There are several fundamental factors that help shape the long-term strength or weakness of the major currencies and will affect you as a forex trader. We’ve included what we think are the most important for your reading pleasure: Economic Growth and Outlook We start easy with the economy and outlook held by consumers, businesses, and…

We just learned that currency prices are affected a great deal by changes in a country’s interest rates. We now know that interest rates are ultimately affected by a central bank’s view on the economy and price stability, which influence monetary policy. Central banks operate like most other businesses in that they have a leader, a president,…

As we mentioned earlier, national governments and their corresponding central banking authorities formulate monetary policy to achieve certain economic mandates or goals. Central banks and monetary policy go hand-in-hand, so you can’t talk about one without talking about the other. While some of these mandates and goals are very similar between the world’s central bank,…

Interest rates make the forex world go ’round! In other words, the forex market is ruled by global interest rates. A currency’s interest rate is probably the biggest factor in determining the perceived value of a currency. So knowing how a country’s central bank sets its monetary policy, such as interest rate decisions, is a crucial thing to…

Along your travels, you’ve undoubtedly come across Gulliver, Frodo, and the topic of fundamental analysis. Wait a minute… We’ve already given you a teaser about fundamental analysis during Kindergarten! Now let’s get to the nitty-gritty! What is it exactly and will I need to use it? Well, fundamental analysis is the study of fundamentals! That was easy,…